Story Highlights

Two unforeseeable and uncontrollable events within seven years gave itSynergy CEO Michael Cocanower lessons in what's necessary to keep a small business afloat.

The first came in 2001, when the NASDAQ stock exchange crashed. At the time, the majority of the Phoenix IT consulting firm's business was generated through software development, mostly for homebuilders. The crash dried up a lot of technology budgets, but because existing systems needed to be maintained, typically software spending was axed while consulting and support remained intact.

Cocanower's company took a hit from which it was able to recover. Yet, that was when he realized a shift in his business model was necessary to ensure its survival. He built up the consulting side of the business so it wasn't so heavily reliant on one component.

"That was a big lesson. It only took a few clients to leave for it to hurt badly," said Cocanower, who started itSynergy in 1997.

For the first few years, software development represented 85 percent of company revenue and IT consulting accounted for 15 percent, Cocanower said. Currently, consulting generates 90 percent of revenue and 10 percent comes from software.

When the recession hit, Cocanower's company was on more solid ground amid what had quickly become rough terrain for many small businesses. But this time, he discovered that creating a client base representing a range of industries would provide more insurance.

Both (the crash and recession) were very traumatic and produced very different lessons," Cocanower recalled. "The first was, don't have all your eggs in one basket. The second, even if you have a lot of clients, if they're all in one industry, you can be in the same boat."

Cocanower learned well. He not only survived both potentially business-ending challenges but also experienced growth. In 2000, he had 15 clients. Currently, itSynergy has more than 200, some out of state, he said.

"We're in the best position we've ever been in with the number of clients we have and the diversity of industries," Cocanower said. "But, with my personality type, I'm never happy ... there's always room for improvement."

In the early years, large companies comprised his clientele. Today, most are small or mid-size businesses that benefit from his comprehensive tech services that extend beyond the expected parameters.

When a satellite television company failed to show up at the Arizona Super Bowl Host Committee's new office in downtown Phoenix's Renaissance Square to set up access to the NFL Network, committee CFO Tina DeNicole called Cocanower for help.

The host committee contracts with itSynergy for technical support through its Business Connect program, which provides opportunities for Arizona small businesses to conduct Super Bowl business and stimulate the local economy.

DeNicole told Cocanower that she knew it wasn't his responsibility, but she was in a pinch and hoped itSynergy could come to the rescue. It did.

"It was phenomenal, the support they gave us," she said. "We're just amazed at how a small company can take care of us."

A native Phoenician, Cocanower graduated from North High School and attended the University of Arizona but earned his bachelor's degrees in finance and computer information systems from Arizona State University.

When Cocanower left Tucson, he took a temp job with a residential homebuilder doing tech consulting in Phoenix. His new employer was impressed and officially hired Cocanower.

Cocanower's initial goal of a finance career gradually gave way to computers. He was consulting with another company and over time grew tired of being unable to implement ideas that would improve current procedures or quality of work. This, along with seeing how other firms operate, motivated Cocanower to branch out on his own.

"It seems a lot of IT people have lost sight of the fact that technology is here to support the objective of the business," he said. "When technology people are dictating the technology requirements, something's gone wrong. Business is the driver."

Cocanower launched his business, offering a variety of skill sets that would be difficult for smaller companies to keep on a payroll in-house. Contacts in the residential construction industry gave him an initial steady base of large clients.

About his company's launch, Cocanower said, "It was by far the scariest thing I've ever done. There are no guarantees of a paycheck, only hope of one."

Cocanower enjoys facilitating company events ranging from charitable work to family gatherings and meeting his employees' significant others and relatives. He said getting to know each other on a personal level in turn improves the working relationship in the office, which ultimately benefits clients.

And being able to take care of clients' technology needs so they are free to focus on their jobs is what drives itSynergy.

"There is nothing I can do to treat teeth, but if I can save a dentist 30 minutes a week not thinking about IT, it gives that dentist back 30 minutes to see more patients or spend more time with a patient," Cocanower said. "We're not going to get you bogged down with, 'That's not our job.' Anything that's technology related becomes our problem, not your problem."

itSynergy

Where: 7310 N. 16th St., Suite 130, Phoenix

Employees: 12

Interesting stat: Worldwide IT spending is projected to grow 3.2 percent this year, approaching $3.8 trillion, according to technology research company Gartner.